Term
| Perfect Competition (characteristics) |
|
Definition
i. Many buyers & Sellers
ii. Identical product (perfect Substitutes)
iii. Perfectly informed buyers/sellers
iv. Free entry & exit
v. Independent buyers & sellers, no control over price |
|
|
Term
| Pure Monopoly (characteristics) |
|
Definition
i. Single seller
ii. Unique product, no close substitutes
iii. Barriers to entry (restricted/regulated)
iv. Complete control over price |
|
|
Term
| Oligopoly (characteristics) |
|
Definition
i. Few Sellers
1. (2-4 largest control over 70%)
ii. Standardized or differentiated
iii. Barriers to entry
1. Cost
iv. Some price control |
|
|
Term
| Monopolistic competition (characteristics) |
|
Definition
i. Many firms
ii. Differentiated product
iii. Few Barriers
iv. Slight price control |
|
|
Term
|
Definition
|
|
Term
|
Definition
| the costs of production are lowest when only one firm provides output. |
|
|
Term
|
Definition
| exists because the government either owns & runs the business or authorizes only one producer. |
|
|
Term
|
Definition
| no other producers or sellers within a certain region. |
|
|
Term
|
Definition
| firm controls a manufacturing method, an invention, or a type of technology. |
|
|
Term
|
Definition
* Copyright is protection for creators of "original works of authorship," including musical, dramatic, literary, architectural, and other works. U.S. copyrights span the author's life plus 70 years. A patent is a grant of property right of an invention for a limited time (20 years under U.S. law), and it includes the right to exclude others from making, selling, or importing the invention.
* A trademark is a distinctive word, name, or symbol used to indicate and distinguish the source of goods. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
i. Physical characteristics
ii. Location
iii. Service level
iv. Advertising (Millions of $) |
|
|
Term
|
Definition
* business owned & controlled by 1 person
* Oldest and simplest, most common type in U.S. |
|
|
Term
| Chief Advantage of sole Proprietorship |
|
Definition
| Executive Rights to Profits |
|
|
Term
|
Definition
| Business owned & controlled by two or more people |
|
|
Term
|
Definition
| partners enjoy equal decision |
|
|
Term
|
Definition
| some partners invest but do not take part in management |
|
|
Term
|
Definition
* legally distinct from their owners (business is separate)
* Not the most numerous but they deal w/ the largest amount of money (84%) |
|
|
Term
| Stock, share, shareholder/stockholder |
|
Definition
stock: most common way to raise $.
Shares: issues of stock
Shareholder: may receive dividends or have profits reinvested |
|
|
Term
|
Definition
| shares of stock that a corporation gives it's shareholder. |
|
|
Term
|
Definition
| the joining of companies that offer the same or similar products or services |
|
|
Term
|
Definition
| the combining of companies involved in different steps of production or marketing of a product or service |
|
|
Term
|
Definition
| results from a merger of companies that produce unrelated goods or services |
|
|
Term
|
Definition
| works like a business to provide goods and services while pursuing other goals... like improving educational standards....etc. |
|
|
Term
|
Definition
a. All people 16+ who are employed or looking for work
b. Does not include those in the military or in prison, younger than 16….etc. |
|
|
Term
|
Definition
| a. Labor is this because there is demand for a product, there is a demand for workers that make that particular product. |
|
|
Term
| How are wages determined? |
|
Definition
i. Determined by supply or workers & demand for workers
ii. Equilibrium is wage rate |
|
|
Term
|
Definition
| seeks better conditions for workers |
|
|
Term
|
Definition
1. Union and management representatives meet to discuss goals & offer solutions
2. Often results in contract settlement, but if not… |
|
|
Term
|
Definition
| 1. Call in a neutral third party to listen and suggest an agreement |
|
|
Term
|
Definition
| 1. Calls in a neutral third party, however, arbitrator’s decision is legally binding |
|
|
Term
| Income demand determinant (normal & inferior) |
|
Definition
Normal Goods:
When income rises, demand increases
When income falls, demand decreases
Inferior Good:
When income rises, demand decreases
When Income falls, Demand increases |
|
|
Term
| Elasticity of demand (definition & formulas) |
|
Definition
a. Responsiveness by consumers
b. It measures the % change in quantity demanded that results from a % change in price |
|
|
Term
| Difference between elastic and inelastic |
|
Definition
| if there is little/no response to price change PED is said to be inelastic… If there’s a large response to price change, PED is said to be elastic. |
|
|
Term
|
Definition
| too much supply, not enough demand |
|
|
Term
|
Definition
| not enough supply, too much demand. |
|
|
Term
| Price Floor (def, graph, examples) |
|
Definition
| Minimum legal, price helps producers…ex. Agriculture) |
|
|
Term
| Price ceiling (def, graph, examples) |
|
Definition
| Max Legal Price, helps consumer… ex. Rent controls, WWII) |
|
|
Term
|
Definition
| a situation that exists when there are not enough resources to meet human wants. |
|
|
Term
|
Definition
| the study of how individuals and societies satisfy their unlimited wants with limited resources. |
|
|
Term
| Resources/Factors of Production |
|
Definition
| the economic resources needed to produce goods and services |
|
|
Term
|
Definition
| the value of something that is given up by choosing one alternative over another |
|
|
Term
| Production Possibilities Curve |
|
Definition
| a graph used to illustrate the impact of scarcity on an economy |
|
|
